THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.10 - THE NATIONAL GUARANTEE FUND

Division 6B - Claims in respect of net obligations

SECTION 954S   HOW CLAIM UNDER SUBSECTION 954P(2) IS TO BE SATISFIED  

954S(1)  [Board to be satisfied]  

Subject to section 954V, SEGC must allow a claim under subsection 954P(2) if the Board is satisfied that:

(a)  the claimant is entitled to make the claim; and

(b)  the obligation referred to in paragraph 954P(1)(c) still remains undischarged to the extent of a particular number of securities of a particular kind (in this section called the ``outstanding securities'' ).

954S(2)  [How claim to be satisfied]  

Subject to subsection (3), if SEGC allows the claim, it must transfer to the claimant securities of the same kind and number as the outstanding securities.

954S(3)  [Not reasonably practicable to obtain securities]  

If the Board is satisfied that it is not reasonably practicable for SEGC to obtain securities of the same kind and number as the outstanding securities within the pre-cash settlement period, SEGC must satisfy the claim by paying to the claimant the amount that, as at the time when the Board decides it is so satisfied, is the actual pecuniary loss suffered by the claimant in respect of the failure to transfer the outstanding securities.

954S(4)  [Calculating pecuniary loss]  

In working out the amount of the actual pecuniary loss suffered in respect of the failure to transfer the outstanding securities, regard may be had to the cost to the claimant of any securities of the same kind as the outstanding securities that the claimant obtained because the outstanding securities were not transferred.

954S(5)  [``pre-cash settlement period'']  

In this section:

``pre-cash settlement period'' means:

(a)  if the business rules of the settlement authority that is referred to in paragraph 954P(1)(a), as in force when the Board allows the claim, prescribe a period, for the purposes of this section, in relation to a class of claims that includes the claim - that period; or

(b)  otherwise - such period as the Board, having regard to all the circumstances of the claim, considers reasonable.